Compare the Market property expert Andrew Winter: The struggle doesn’t end once buyers have the keys to their new home
Queensland homeowners have been hit with the nation’s biggest hike in loan repayments over the past decade, according to fresh data putting the housing affordability crisis in stark focus.
The alarming new figures show the state’s homeowners are forking out $22,000 more a year on an average home loan, compared to the national increase of $19,000.
Compare the Market’s analysis revealed monthly mortgage repayments in every state in 2025 based on loan size and average variable rates, compared to in 2015.
With average loan sizes doubling in parts of the country, repayments have skyrocketed despite similar interest rates ten years ago.
Repayments have skyrocketed despite similar interest rates to 10 years ago
In the Sunshine State, a typical home loan blew out from $358,000 in 2015 to $687,000 last year, up 92 per cent.
Queenslanders paid an average of $3,901 per month in 2025, compared to $2,024 ten years ago – a spike of $1,877.
NSW recorded the next highest monthly increase of $1,824, from $2,877 to $4,701, while loan sizes jumped most over the decade surveyed in Tasmania (103 per cent), and South Australia (99 per cent), according to the analysis of Australian Bureau of Statistics (ABS) figures.
The data showed the difficult path to home ownership, Mr Winter said
Compare the Market property expert Andrew Winter said the data showed the battle to crack the heated property market wasn’t necessarily the biggest challenge homeowners faced.
“So often the emphasis is put on raising a deposit but for many the real challenge begins when they start servicing their loan,” Mr Winter said.
“Repayments on average homes in our capital cities aren’t cheap and for many working Australians they just aren’t affordable.”
Real Estate Institute of Queensland CEO Antonia Mercorella said demand for property had increased “exponentially”, exceeding housing supply across the state.
“Record levels of interstate migration into Queensland coupled with local demand, low unemployment, relatively low interest rates, a tight rental market, high consumer confidence and the Olympic Games on the horizon have all been fundamental factors behind the strength and pace of property price growth in our state,” Ms Mercorella said.
Demand exceeded supply across the state
Real Estate Buyers Agents Association of Australia president Melinda Jennison said the affordability crunch affected both first homebuyers and existing homeowners.
“For existing homeowners, higher repayments mean a bigger share of household income is redirected to the mortgage, reducing discretionary spending and leaving less buffer for cost-of living shocks.”
She also noted “compromise buying” as new buyers beat restricted borrowing power by opting for smaller homes, attached housing, or moving further out, while some households delayed upgrading altogether.
Ms Mercorella said those looking to upgrade or downsize were reluctant to sell due to the challenge of buying back into such a tight market.
New buyers were shifting to townhouse and units
Inovayt finance broker Andre Dixon noted a shift in buyer behaviour.
“Borrowers are far more engaged with their finances. People are reviewing loans more often and focusing on what’s comfortable, not just what the bank will approve.”
Mr Dixon said first homebuyers had also become more strategic with their search.
“Higher repayments haven’t stopped demand. First homebuyers are adjusting expectations, considering different suburbs or property types, and using incentives more effectively.”
Mr Winter tipped a surge in homeowners seeking to refinance if the RBA ups rates again.
With the official cash rate sitting at 3.6 per cent, a single 0.25 per cent move by the Reserve Bank of Australia (RBA) could add $110 onto monthly repayments on an average loan of $694,000 – that’s $1,320 more a year.
Buyers Agent Melinda Jennison. Photo: Supplied
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“If the cash rate goes up again this year, I think a lot of people are really going to feel it. As the cost of owning a home gets even more expensive, we have to make the most of the few ways that we can still save, by shopping around for a better home loan,” Mr Winter said.
Mr Dixon said more homeowners were using brokers to explore their options, rather than going directly to a bank.
“A loan review, better structure, or refinance can quickly ease pressure.”
Brisbane was tipped to remain at record levels of unaffordability
Ms Jennison expected Brisbane to remain at record levels of unaffordability, with demand pushing to smaller homes and outer-ring locations.
“Even so, Brisbane’s key issue is still undersupply. When stock remains tight and demand stays elevated, price pressure tends to persist.”
Building more houses was key, Ms Mercorella said: “If we want a future where home ownership remains attainable, governments must stay firmly committed to driving new housing delivery and supporting first homebuyers.”
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